There are people who grow up in households that practice financial responsibility and hand these lessons down to their kids. Then there are people who grow up on the opposite end of the spectrum that do not have financial skills. In these households, children often saw bad financial practices or do not learn anything about money at all. If you grew up in a home that did not have adults that were able to teach you about finances, you may start out with a huge gap in knowledge. Here are some ways to be the first generation in your family to take proper financial responsibility for your life.
Open a traditional bank account and 401k
A traditional bank account that has low fees is one of the best ways to operate with your money. Banks often have less possible hangups than pre-paid services, plus you will be able to utilize the services that bank branches offer. Another account that you should open along with your bank account is a 401k. A savings account for retirement is mandatory in order to have enough money to retire one day. Open a 401k when you open your bank account in order to place contributions as early as possible. The longer the money has time to earn interest, the easier it will be to save money for retirement.
Keep a strict budget for one year
For at least a one year span, create a budget and stick to it down to the dollar. In some financially irresponsible households, spending is often out of control and not planned. Knowing where all of your dollars will be going is the appropriate way to create financial health. Make a budget on a monthly basis and stick to it. This will also give you an idea of how much income you need on a monthly basis in order to maintain a lifestyle that is comfortable for you.
Calculate your future lifestyle
If you have big dreams, such as buying a fabulous house or opening your own business, it is best to get started with planning today. See a financial service that helps with planning for your future in order to take the first step. A financial advisor will let you know how much you need to save on a monthly and yearly basis in order to reach your goal. Seeing your future in detailed facts and figures will make finances make more sense and offer you a sense of control you may not have had growing up.
Contact financial services for more tips and advice.